The Current Status of Our Economy and Home Purchases

With the current status of our economy, there hasprojects going up while the rest of the market sits
never been a better time to buy. Interest rates juston the sidelines.
dropped again. Appraisers are very conservative onFirst of all, most custom-home consumers are in it
land prices keeping them at their lowest point infor the long haul. Log homes especially are the homes
years. Bank credit may be tighter, but alwaysdreams are made of. Many consider their log home
remember that banks do not make money if they doto be the last home they will have. This motivation
not loan it. For those with the proper collateral, theyallows consumers to look at their project within the
will loan more than ever. If you are thinking aboutcontext of long-term appreciation in real estate,
buying or building, now is clearly the time.which has performed well over any 10-year period
Even better, wood prices are at their lowest insince the Great Depression, regardless of interim
decades. Log and timber frame manufacturers areslumps.
temporarily experiencing slower sales. Some areIf you have been planning your project for several
sending office staff to job sites at no charge to helpyears and expect to move in and stay in the home
stack the logs for less. Nearly all are being verylong term, it's unlikely you will want to derail your
creative and flexible to satisfy homeowners. Lately,project from its current path as long as you can still
Custom Woodcraft Builders has been gettingafford to build. In many cases, the planning and
unbelievably aggressive prices - as much as half thepermitting processes are more likely to dictate your
norm.timing for starting construction than temporary
Here in the Midwest, there have been some verymarket conditions.
unique challenges in timber framing with more thanCustom Woodcraft Builders has found that in down
one closing their doors. Until they are re-established,markets, custom-home buyers have some financing
Custom Woodcraft Builders has made wholesale priceadvantages over ordinary homebuyers. Despite the
arrangements with a west coast mill housing a statedifficulties in the credit markets, the larger portfolio
of the art CNC machine for accurate fast turnbanks are currently the prime sources for financing,
around and free delivery to any job site in the USA.while the rest of the lending institutions are struggling.
The blueprint design process can begin right away.These same banks have always been the best
NO ONE can deliver a quality timber frame for lessresource for log-home construction loans, particularly
and Custom Woodcraft Builders drawing/draftingthe one-time-close loan products that wrap in
rates are very aggressive.permanent financing with your construction loan. This
Custom Woodcraft Builders has also arranged antype of loan can protect your project in a downward
extra 8% discount off wholesale on SIP panels formarket since it doesn't need an appraisal to roll to
the next 90 days. Now is the time to make thosethe permanent loan, eliminating financing concerns in a
dreams a reality. It is clearly a buyer's market.declining market. A knowledgeable mortgage broker,
Still, instead of lumping all the housing trends togetherexperienced in construction financing, can help you
to create a panic, there is more to be gained byfind the right bank product to bring your project to
examining the facts of this correction as it relatesthe finish line.
specifically to the custom-home niche that log homesAdditionally, downward-trending real estate markets
fit into.are traditionally accompanied by lower interest rates.
Most of the foreclosures occurring today areThe Federal Reserve has already dropped the rates
happening at the lowest end of the market. Buildersto keep the economy moving. These lower rates
who created large tracts of production homes haveresult in lower financing costs during construction and
seen their aggressive sales tactics to under-qualifiedultimately lower house payments for you in the long
first-time buyers backfire, leaving wholerun. Another benefit of the declining values is that it
developments half empty. Luckily, these projects arecreates justification for a lower-value assessment for
mostly affecting pockets of real estate withoutyour property when it's complete. This results in
devastating all of the surrounding areas or the higherlower property taxes, creating more monthly savings.
end of the market. Most custom homes are in theA slowdown in construction means that there is an
upper range of value in areas that are generally moreabundance of labor and materials on the market
established with a mix of homeowners who aretoday. After a decade of strong demand pushing up
generally not first-time homebuyers.the costs of materials and making labor expensive
The slowdown in construction starts mostly reflectsand scarce, inventories are piling up, and many people
these large-scale builders, who are now slowing downin the construction industry are looking for work.
their production to fit the changing market.Cost of construction is already declining in many
Meanwhile, custom-home building permits areregions. You can take advantage of this cost
remaining relatively steady, as they have for the lastreduction to keep your budget in line with the values
20 years.of the area, regardless of whether they are stable or
Custom-home buyers in the past have continued todeclining. For additional details or questions regarding
build steadily, even through downturns such as thoseyour project feel free to contact Custom Woodcraft
in the late '80s and early '90s. Several mitigatingBuilders.
factors tend to keep log homes and other custom